Nusantara might redefine urban sustainability. As Indonesia’s new capital, it aspires to lead the region in green innovation. With an untapped potential to generate 34,105 GW of energy from renewable sources – Nusantara aligns seamlessly with Indonesia’s Sustainable Development Goals (SDGs). In analyzing the legal structures supporting circular economy in Nusantara, this article applies Lawrence Meir Friedman’s approach to substance, structure, and culture, drawing insights from Reykjavik and Stockholm. Both Stockholm and Reykjavik offer leadership in sustainable urban planning, leveraging technological innovation and comprehensive policy frameworks to balance economic growth with environmental preservation. By adapting these strategies, Nusantara may serve as a pilot city for urban developments in Indonesia, showcasing sustainable practices and positioning itself to meet its SDG targets while advancing Indonesia’s energy transition.
Reykjavik and Stockholm: Circular Economy in Energy
As Nusantara transitions toward a circular economy, valuable lessons can be drawn from global leaders like Reykjavik and Stockholm. These cities have demonstrated the potential of legal frameworks and public-private partnerships in achieving sustainable energy transitions so that Nusantara can adapt to its unique socio-economic and environmental conditions. Reykjavik’s geothermal energy development exemplifies a resource-efficient approach central to the circular economy, transforming natural geothermal reserves into sustainable energy while minimizing waste. Similarly, Stockholm’s biogas initiatives showcase how waste streams can be converted into valuable energy resources, reducing emissions and promoting resource regeneration.
Building on the legal framework outlined for Nusantara, Reykjavik and Stockholm provide actionable insights into how robust policies and innovative practices can accelerate the shift to a circular economy. The success of Reykjavik and Stockholm underscores the importance of integrating renewable energy, eco-efficient transport, and resource management into Nusantara’s circular economy strategy. By tailoring these proven approaches to local contexts, Nusantara can achieve sustainable growth while addressing its unique challenges.
An Icelandic business delegation is heading to COP29 in Baku, Azerbaijan, to share its proven expertise in 100% renewable energy for electricity and heating as well as carbon capture, utilization and storage (CCUS) technologies. Led by Green by Iceland – a platform for public-private partnerships to address climate change. Working with the Icelandic Ministry of Environment, Energy and Climate, the Green by Iceland delegation aims to foster global partnerships to accelerate the green energy transition and support climate resilience. Iceland has made several policy amendments related to geothermal development as a new renewable energy (NRE). Some of these include:
1. National Renewable Energy Action Plan 2020 and Geothermal Energy Forecast 2014-2050
In 2012, Iceland adopted Directive 2009/28/EC for its 2020 strategy, which encourages the use of geothermal energy. The target for geothermal energy use for heating is set to increase by 20% from 28.1 PJ in 2014 to 34 PJ in 2020, while geothermal electricity generation is projected to increase by 12%, from 5.24 TWh to 5.8 TWh
2. Market Development and Stimulation
Geothermal exploration and utilization in Iceland have been encouraged since the 1940s, continued by the Orkustofnun or National Energy Authority since 1967, with a focus on research for economically profitable geothermal utilization.
3. New Project Master Plan
Energy development in Iceland focuses not only on providing energy needs but also on environmental impacts, cultural heritage, and sustainable land use.
Within the legal framework, several steps have been taken, especially in establishing regulations:
1. The Resources Act regulates the extraction of resources from the ground, riverbeds and sea, including the supervision of air power for electricity, and regulates every element that can be extracted.
2. The Electricity Act requires a license from Orkustofnun for power plants with a capacity of more than 1 MW that are included in the distribution or national grid.
3. The Nature Protection Act aims to maintain Iceland’s ecosystem by managing human interactions and minimizing environmental impacts through Environmental Impact Assessments (EIA).
4. The Official Monitoring Act regulates public welfare, safety, environmental protection and consistency of monitoring between institutions.
Subsequently, Stockholm – Sweden’s greenhouse gas emissions declined by a third relative to 1990. In 2016-2020, the Swedish government focused on the municipal government and local businesses to achieve the maximum emission reduction. The strategy tackles both sector-based emissions and consumption-based emissions. It is divided into three target areas: (1) sustainable energy use; (2) eco-efficient transport; and (3) resource-efficient natural cycles.
1. Use of Renewable Sources of Energy
The city’s fuel strategy includes a focus on the development of local networks based on wood chips and on the creation of grid structures that will allow the city to move to renewable energy sources step by step. Progress on this initiative was due for reporting in 2017 and was the responsibility of the Group Board. The heating system of the district has been developed; to decrease the emissions by 240,000 tons of CO2 equivalent by the year 2020, this project is under the shared supervision of the Group Board and Fortum Värme. As per this policy, even the new construction buildings developed by the city authorities should have their Atemp energy limits of 55 kWh per M2 to reach 45 kWh/m2 Atemp shortly. This policy, which reduces emissions by about 25000 tons, is the responsibility of the Development Committee.
2. Transport that is Eco-Efficient
In an action plan submitted to the state, the city has set a goal of making road transportation free from fossil fuels by proposing a ban on the sale of fossil fuels by the year 2040 with an Interim target of 2030. A report containing practical proposals was announced for publication within the tender awarded by the City Executive Board by the end of the year 2017 and was to be delivered to the Environment & Public Health Committee and Traffic Committee.
3. Resource-Efficient Natural Cycles
The city is assessing ways to lower the number of fossil-based plastics in incinerated waste, considering the impacts on health, chemicals, and the environment alongside climate effects. A report with proposed actions was planned for submission by the end of 2017, coordinated by the Group Board in collaboration with Stockholm Vatten & Avfall and Fortum Värme. Efforts to increase biogas production aim to achieve a CO2 equivalent reduction of approximately 20,000 tonnes, with responsibility given to the Board of Stockholm Vatten & Avfall.
Lesson for Nusantara: Circular Economy Blueprint
Taking some leads from Reykjavik and Stockholm, there are fundamentals that Nusantara should consider concerning its circular economy blueprint, namely the legal substance, structure, and culture. These are the recommendations:
1. Comprehensive Energy Act: Form an integrated legal framework that regulates renewable energy development, management of resources and protection of the environment and which Energy law For Iceland’s resource act and electricity act.
2. Circular Economy Legislation: Specific laws on waste-to-energy initiatives and resource efficiency strategies that promote circular economy principles need to be enacted. The laws could be modeled on Stockholm’s practice in the promotion of Sustainable Energy use and resource-efficient natural cycles.
3. Environmental Impact Assessment (EIA) Regulations: EIA regulations should be reinforced to make sure that all energy projects are subjected to EIA critical evaluation as provided for in Iceland’s Nature Protection Act. Legal Structure.
4. Establish a National Energy Authority: Establish a similar body to Iceland’s Orkustofnun that would be responsible for the Administration and regulation of energy resources, and management of all aspects of the circular economy projects in Sweden.
5. Public-Private Partnership Framework: The need to develop a legal framework that would enable the government and the private sector to collaborate in renewable energy projects as evidenced in Iceland cannot be overemphasized.
References
Abazović, Dino , and Asim Mujkić. 2015. “library.fes.de.” libray.fes.de. Accessed November 10, 2024. https://library.fes.de/pdf-files/bueros/sarajevo/12465.pdf.
Candra. 2024. listrikindonesia.com. January 8. Accessed November 10, 2024. https://listrikindonesia.com/detail/12336/ini-potensi-energi-terbarukan-kalimantan-timur.
Indonesia, Presiden Republik. 2022. “ikn.go.id.” ikn.go.id. Accessed November 10, 2024. https://www.ikn.go.id/storage/regulasi/perpres-63-tahun-2022.pdf.
Ketilsson, Jonas. 2015. “Legal Framework and National Policy for Geothermal Development in Iceland.” Proceedings World Geothermal Congress 1-12.
Knowledge, C40. 2016. c40knowledgehub.org. December. Accessed November 10, 2024. https://www.c40knowledgehub.org/s/article/Strategy-for-a-fossil-fuel-free-Stockholm-by-2040?language=en_US#:~:text=This%20essential%20shift%20also%20creates,sustainable%20Stockholm%20will%20be%20built.%E.
Mada, Pusat Studi Energi Universitas Gadjah. 2021. “pse.ugm.ac.id.” pse.ugm.ac.id. March. Accessed November 10, 2024. https://pse.ugm.ac.id/wp-content/uploads/sites/36/RBrief-PSE-Mar-2021.pdf.
Nasional, Kementerian Perencanaan Pembangunan. 2021. “ikn.go.id.” ikn.go.id. July. Accessed November 10, 2024. https://www.ikn.go.id/storage/buku-saku-ikn-072121.pdf.
Nienartowicz, Justyna Maliszewska. 2024. “The energy transition in the cities of Copenhagen, Helsinki, and Stockholm: Similar or different pathways towards the EU’s 2030 targets?” Urban Climate.
Sweden, Government Offices of. 2020. “faolex.fao.org.” faolex.fao.org. July. Accessed November 10, 2024. https://faolex.fao.org/docs/pdf/swe208661.pdf.
